SEC Provides Incentives and Protections to Whistleblowers Under New Rules Implementing the Dodd-Frank Act
08 June 2011Employment Alert
On Wednesday, 25 May 2011, the Securities and Exchange Commission adopted its final rules implementing the Whistleblower Program under Section 922 of the Dodd-Frank Act. The SEC Whistleblower Program rewards individuals who provide the SEC with high-quality tips that lead to successful enforcement actions. Individuals are eligible for awards of between 10% and 30% of the amount recovered. To be considered for an award, an individual must alone or jointly with others voluntarily provide original information to the SEC relating to a possible violation of the securities laws that has occurred, is ongoing or is about to occur, and the information provided must "lead to the successful enforcement by the SEC of a federal court or administrative action in which the SEC obtains monetary sanctions totaling more than $1 million."
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